Abbott Stock Volatility

ABT
 Stock
  

USD 110.27  2.36  2.19%   

We consider Abbott Laboratories very steady. Abbott Laboratories secures Sharpe Ratio (or Efficiency) of 0.0272, which signifies that the company had 0.0272% of return per unit of standard deviation over the last 3 months. Our philosophy in foreseeing the volatility of a stock is to use all available market data together with stock-specific technical indicators that cannot be diversified away. We have found twenty-seven technical indicators for Abbott Laboratories, which you can use to evaluate the future volatility of the firm. Please confirm Abbott Laboratories mean deviation of 1.29, and Risk Adjusted Performance of (0.035506) to double-check if the risk estimate we provide is consistent with the expected return of 0.0434%.
  
Abbott Laboratories Stock volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Abbott daily returns, and it is calculated using variance and standard deviation. We also use Abbott's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Abbott Laboratories volatility.

240 Days Market Risk

Very steady

Chance of Distress

Very Low

240 Days Economic Sensitivity

Almost mirrors the market

ESG Sustainability

While most ESG disclosures are voluntary, Abbott Laboratories' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Abbott Laboratories' managers and investors.
Environment Score
Governance Score
Social Score
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Abbott Laboratories can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Abbott Laboratories at lower prices. For example, an investor can purchase Abbott stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Abbott Laboratories' stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.

Abbott Laboratories Market Sensitivity And Downside Risk

Abbott Laboratories' beta coefficient measures the volatility of Abbott stock compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Abbott stock's returns against your selected market. In other words, Abbott Laboratories's beta of 1.03 provides an investor with an approximation of how much risk Abbott Laboratories stock can potentially add to one of your existing portfolios.
Abbott Laboratories exhibits very low volatility with skewness of 0.07 and kurtosis of 0.24. However, we advise investors to further study Abbott Laboratories technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Abbott Laboratories' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Abbott Laboratories' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Abbott Laboratories Implied Volatility

Abbott Laboratories' implied volatility exposes the market's sentiment of Abbott Laboratories stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Abbott Laboratories' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Abbott Laboratories stock will not fluctuate a lot when Abbott Laboratories' options are near their expiration.
3 Months Beta |Analyze Abbott Laboratories Demand Trend
Check current 90 days Abbott Laboratories correlation with market (DOW)

Abbott Beta

    
  1.03  
Abbott standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  1.59  
It is essential to understand the difference between upside risk (as represented by Abbott Laboratories's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Abbott Laboratories stock's daily returns or price. Since the actual investment returns on holding a position in Abbott Laboratories stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Abbott Laboratories.

Using Abbott Put Option to Manage Risk

Put options written on Abbott Laboratories grant holders of the option the right to sell a specified amount of Abbott Laboratories at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Abbott Stock cannot fall below zero, the put buyer does gain as the price drops. So, one way investors can hedge Abbott Laboratories' position is by buying a put option against it. The put option used this way is usually referred to as insurance. If an undesired outcome occurs and loss on holding Abbott Laboratories will be realized, the loss incurred will be offset by the profits made with the option trade.

Abbott Laboratories' PUT expiring on 2022-08-12

   Profit   
Share
       Abbott Laboratories Price At Expiration  

Current Abbott Laboratories Insurance Chain

DeltaGammaOpen IntExpirationCurrent SpreadLast Price
Put
2022-08-12 PUT at $96.0-0.0210.00812022-08-120.0 - 0.040.05View
Put
2022-08-12 PUT at $97.0-0.01540.0072242022-08-120.0 - 0.050.03View
Put
2022-08-12 PUT at $98.0-0.02440.010732022-08-120.0 - 0.090.06View
Put
2022-08-12 PUT at $99.0-0.01580.0091712022-08-120.0 - 0.040.02View
Put
2022-08-12 PUT at $100.0-0.02240.0129412022-08-120.01 - 0.060.02View
Put
2022-08-12 PUT at $101.0-0.02990.017772022-08-120.03 - 0.060.1View
Put
2022-08-12 PUT at $102.0-0.04130.0252162022-08-120.01 - 0.110.12View
Put
2022-08-12 PUT at $103.0-0.07880.0408352022-08-120.03 - 0.140.13View
Put
2022-08-12 PUT at $104.0-0.1110.0572242022-08-120.08 - 0.180.18View
Put
2022-08-12 PUT at $105.0-0.16090.0807732022-08-120.16 - 0.270.26View
Put
2022-08-12 PUT at $106.0-0.23520.1128742022-08-120.32 - 0.460.38View
View All Abbott Laboratories Options

Abbott Laboratories Stock Volatility Analysis

Volatility refers to the frequency at which Abbott Laboratories stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Abbott Laboratories' price changes. Investors will then calculate the volatility of Abbott Laboratories' stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Abbott Laboratories' volatility:

Historical Volatility

This type of stock volatility measures Abbott Laboratories' fluctuations based on previous trends. It's commonly used to predict Abbott Laboratories' future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Abbott Laboratories' current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Abbott Laboratories Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
.

Abbott Laboratories Projected Return Density Against Market

Considering the 90-day investment horizon the stock has the beta coefficient of 1.03 . This suggests Abbott Laboratories market returns are related to returns on the market. As the market goes up or down, Abbott Laboratories is expected to follow.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Abbott Laboratories or Healthcare sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Abbott Laboratories stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Abbott stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has a negative alpha, implying that the risk taken by holding this instrument is not justified. Abbott Laboratories is significantly underperforming DOW.
   Predicted Return Density   
       Returns  
Abbott Laboratories' volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Abbott Laboratories stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Abbott Laboratories Stock Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Abbott Laboratories or Healthcare sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Abbott Laboratories stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Abbott stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Considering the 90-day investment horizon the coefficient of variation of Abbott Laboratories is 3671.65. The daily returns are distributed with a variance of 2.53 and standard deviation of 1.59. The mean deviation of Abbott Laboratories is currently at 1.27. For similar time horizon, the selected benchmark (DOW) has volatility of 1.25
α
Alpha over DOW
-0.05
β
Beta against DOW1.03
σ
Overall volatility
1.59
Ir
Information ratio -0.03

Abbott Laboratories Stock Return Volatility

Abbott Laboratories historical daily return volatility represents how much Abbott Laboratories stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. The firm has volatility of 1.5918% on return distribution over 90 days investment horizon. By contrast, DOW inherits 1.2715% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Abbott Laboratories Volatility

Volatility is a rate at which the price of Abbott Laboratories or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Abbott Laboratories may increase or decrease. In other words, similar to Abbott's beta indicator, it measures the risk of Abbott Laboratories and helps estimate the fluctuations that may happen in a short period of time. So if prices of Abbott Laboratories fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Last ReportedProjected for 2022
Market Capitalization248.9 B197.5 B
Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois. Abbott Laboratories operates under Medical Devices classification in the United States and is traded on New York Stock Exchange. It employs 113000 people.

Abbott Laboratories Investment Opportunity

Abbott Laboratories has a volatility of 1.59 and is 1.25 times more volatile than DOW. 13  of all equities and portfolios are less risky than Abbott Laboratories. Compared to the overall equity markets, volatility of historical daily returns of Abbott Laboratories is lower than 13 () of all global equities and portfolios over the last 90 days.
Use Abbott Laboratories to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The stock experiences an unexpected upward trend. Watch out for market signals. Check odds of Abbott Laboratories to be traded at $132.32 in 90 days. .

Poor diversification

The correlation between Abbott Laboratories and DJI is Poor diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Abbott Laboratories and DJI in the same portfolio, assuming nothing else is changed.

Abbott Laboratories Additional Risk Indicators

The analysis of Abbott Laboratories' secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Abbott Laboratories' investment and either accepting that risk or mitigating it. Along with some common measures of Abbott Laboratories stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Risk Adjusted Performance(0.035506)
Market Risk Adjusted Performance(0.048104)
Mean Deviation1.29
Coefficient Of Variation(3,307)
Standard Deviation1.65
Variance2.72
Information Ratio(0.028697)
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Abbott Laboratories Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
Dupont Denemours vs. Abbott Laboratories
Twitter vs. Abbott Laboratories
Otp Bank vs. Abbott Laboratories
B of A vs. Abbott Laboratories
Alphabet vs. Abbott Laboratories
Nasdaq QQQ vs. Abbott Laboratories
Vmware vs. Abbott Laboratories
Salesforce vs. Abbott Laboratories
Bitcoin vs. Abbott Laboratories
Bitcoin Invt vs. Abbott Laboratories
Walker Dunlop vs. Abbott Laboratories
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Abbott Laboratories as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Abbott Laboratories' systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Abbott Laboratories' unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Abbott Laboratories.
Please continue to Trending Equities. Note that the Abbott Laboratories information on this page should be used as a complementary analysis to other Abbott Laboratories' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.

Complementary Tools for Abbott Stock analysis

When running Abbott Laboratories price analysis, check to measure Abbott Laboratories' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Abbott Laboratories is operating at the current time. Most of Abbott Laboratories' value examination focuses on studying past and present price action to predict the probability of Abbott Laboratories' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Abbott Laboratories' price. Additionally, you may evaluate how the addition of Abbott Laboratories to your portfolios can decrease your overall portfolio volatility.
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Is Abbott Laboratories' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Abbott Laboratories. If investors know Abbott will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Abbott Laboratories listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.73
Market Capitalization
190.9 B
Quarterly Revenue Growth YOY
0.1
Return On Assets
0.0896
Return On Equity
0.24
The market value of Abbott Laboratories is measured differently than its book value, which is the value of Abbott that is recorded on the company's balance sheet. Investors also form their own opinion of Abbott Laboratories' value that differs from its market value or its book value, called intrinsic value, which is Abbott Laboratories' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Abbott Laboratories' market value can be influenced by many factors that don't directly affect Abbott Laboratories' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Abbott Laboratories' value and its price as these two are different measures arrived at by different means. Investors typically determine Abbott Laboratories value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Abbott Laboratories' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.